The World Bank will triple its annual lending ceiling for the Philippines in the next four years as the government also ramps up infrastructure and human capital investments.
“We are expecting to ramp up our portfolio with the World Bank to about $1.5 billion to $2 billion annually, starting next year,” said Finance Secretary Carlos G. Dominguez III.
“This is about three times higher than the bank’s average annual lending commitment of about $600 million to the Philippines for the past 10 years,” he said after the ceremonial signing between the Philippine government and the WB of the $400 million program called Promoting Competitiveness and Enhancing Resilience to Natural Disasters Sub-Program 1 Development Policy Loan or simply DPL.
“This will allow us to maximize the [World] Bank’s financing support as a donor institution, “ Dominguez said.
It would also allow the Philippines to tap World Bank “expertise and experience as a knowledge bank in various areas including strengthening governance, human capital development, disaster preparedness and addressing fragility in conflict,” the finance chief said.
“This financing support very clearly helps drive our general effort to build a resilient and competitive society over the medium term,” Dominguez added.
“We thank the World Bank for its confidence in our determination to push forward reforms that will create a strong and inclusive economy for our people,” he said.
The fresh WB loan, Dominguez said, would help the Philippines “improve financial mechanisms available for disaster response.”
It would also help “formulate public asset management policies and enhance regulation for the insurance market against natural disasters,” he said.
The loan is also aimed at helping the Philippines ensure food security, streamline processes for ease of doing business, increase access to economic opportunities through the national ID and electronic payment systems.
Achim Fock, WB acting country director for Brunei, Malaysia, Philippines and Thailand, said the remaining two tranches of the three-part DPL would be approved by the WB board by end of 2020 and 2021.